Startups need to be constantly growing to stay afloat, but they also need to drive engagement concurrently, otherwise what is the point of growth? One key metric to track for growth is the DAU/MAU metric (Daily Active Users/Monthly Active Users). If your startup isn’t seeing the growth you want, it might be time to reevaluate your DAU/MAU ratio. In this blog post, we’ll go over what the DAU/MAU ratio is and how you can improve it. Stay tuned!
What Is The DAU/MAU Ratio?
The DAU/MAU ratio is a metric that tracks user engagement in social media and other online platforms. DAU stands for Daily Active Users, while MAU stands for Monthly Active Users. The ratio is calculated by dividing the number of DAUs by the number of MAUs. The resulting number can be expressed as a percentage or as a decimal.
A high DAU/MAU ratio indicates that a substantial portion of a platform’s users are active daily and are repeat users. In contrast, a low ratio indicates that most users visit the site occasionally and are unique. The DAU/MAU ratio is an important metric for evaluating the success of online businesses and determining whether new users are likely to stick around or quickly lose interest.
For example, a growing business with a high DAU/MAU ratio indicates strong user engagement and, thus, healthy future growth prospects.
Meanwhile, a low DAU/MAU ratio may be cause for concern, as it suggests that most users are not finding the platform valuable enough to use daily.
Ultimately, the DAU/MAU ratio is just one metric among many that should be considered when evaluating the health of an online business. However, it can be especially helpful in gauging user engagement and spotting potential problems early on.
Why Is It Important For Startups To Track DAU/MAU Ratio?
Startups need to track their DAU/MAU ratio to gauge user retention and engagement. DAU (Daily Active Users) refers to the number of unique users who use the app on a given day, while MAU (Monthly Active Users) is the number of unique users who use the app at least once in a month.
A high DAU/MAU ratio means that users are coming back to the app on a daily basis, which is a good indicator of user retention. A high DAU/MAU ratio can also indicate “app stickiness metrics” – users find the app valuable enough to use it regularly.
For startups, it is important to track this metric over time to assess user engagement and retention, as these are key indicators of success for mobile apps.
5 reasons it is important to track your DAU/MAU include:
- It can help you determine the health of your product and how well it is resonating with users.
- It can benchmark your product against others in your industry.
- It can help you identify and analyze trends in user engagement.
- It can determine whether you need to make changes to your product or marketing strategy.
- It can measure the success of your marketing campaigns.
How To Calculate DAU/MAU Ratio?
(#) Daily active users / (#) Monthly active users = (%) DAU/MAU Ratio
The DAU/MAU Ratio is a metric that calculates the percentage of daily active users out of the total monthly active users. To calculate the DAU/MAU Ratio, simply divide the daily active users by the monthly active users.
For example, if an app had 1,000 DAU and 10,000 MAU, the DAU/MAU Ratio would be 10%. The ratio helps us understand how engaged an app’s user base is.
A high DAU/MAU Ratio indicates that many of an app’s users use the app multiple times daily. This could mean that the app is providing value to its users daily or that it is addictive.
A low DAU/MAU Ratio could indicate that an app is not providing enough value to its users or that it is too complex to use on a daily basis.
What Factors Can Affect DAU/MAU Ratio?
Any app developer knows that a successful app needs active users. But what exactly is an active user, and how can you encourage more of them? An active user is defined as someone who uses your app daily.
The daily active user (DAU) to monthly active user (MAU) ratio measures an app’s stickiness or ability to retain users. A high DAU/MAU ratio means that people use your app frequently, while a low ratio indicates losing interest. Many factors can affect the DAU/MAU ratio, and understanding them is key to keeping your app afloat.
One factor is the overall growth of your user base. As you acquire more users, some will inevitably drop off. However, if you’re seeing strong user growth, your DAU/MAU ratio will also likely increase.
Another factor is the number of app downloads. If people are downloading your app but not using it regularly, it could be due to poor quality or lacking features that appeal to them.
Finally, the weekly active users (WAU) to MAU ratio is also worth considering. A high WAU/MAU ratio means that people use your app consistently, which bodes well for long-term retention.
But fundamentally there are certain applications which will naturally encourage a higher DAU. How often do you check the news? At least once a day, right? You might go to a restaurant finding app once a week when you plan a date on Friday night.
Facebook, for example, had a DAU of 65% back in the day.
You, therefore, need to know that your application will have different DA/MAU ratios when you go to benchmarking yourself.
By considering these factors, you can develop strategies for improving your DAU/MAU ratio and ensuring your app growth.
How To Improve Your DAU/MAU Ratio?
The key to any successful app is a high DAU/MAU ratio. A high DAU/MAU ratio means that your app is attracting new users and retaining existing ones.
There are several ways to improve your DAU/MAU ratio. Here are 16 ways:
- Offer engaging and interactive features that keep users coming back for more.
- Make sure your site or app is easy to use and navigate.
- Keep the app updated with fresh and exciting content regularly.
- Provide customer support to answer any questions or concerns users may have.
- Make sure your site or app is visually appealing.
- Keep the app updated with fresh and exciting content regularly.
- Make sure you are actively engaged with your users on social media platforms.
- Make sure you are constantly monitoring user feedback and addressing any issues promptly.
- Run marketing campaigns that generate excitement and curiosity around the app.
- Offer incentives and rewards for users who engage frequently and/or promote the app to others.
- Make sure you are actively engaged in marketing and advertising efforts.
- Make sure you are constantly evaluating and refining your strategies to ensure optimal engagement rates
- Monitor user feedback and make changes/improvements accordingly.
- Create a personalised experience for each user, based on their preferences and interests.
- Foster a strong community of users who support and engage with one another.
- Identify and target your power users or those who frequently use your app.
By improving your DAU/MAU ratio, you can ensure that your app is always growing and evolving.
Wrap Up
The DAU/MAU ratio is an essential metric for startups. If you want to ensure the long-term success of your startup, make sure you are focused on growing your DAU/MAU ratio. By understanding and utilizing the DAU/MAU ratio, you can give your startup the best chance at achieving lasting success.